India_ Maldives launch cargo ferry service

India launched a direct cargo ferry service to Maldives to strengthen bilateral relations. Shipping Minister Mansukh Mandaviya and Minister of Transport and Civil Aviation of Maldives Ms Aishath Nahula jointly e-launched the service on Monday. The launch of the ferry service came a day after India provided a 10-year soft loan of $250 million to the government of the Maldives as budgetary support to mitigate the economic impact of the Covid-19 pandemic. India will subsidise the ferry service in its initial stage with $3 million_ officials said. The cargo vessel MCP Linz_ operated by the Shipping Corporation of India (SCI)_ will travel from Tuticorin to Cochin and then to Kulhudhuhfushi port in the north of the Indian Ocean archipelago on September 26 before making its way to Male on September 28. The vessel can carry 380 TEUs and 3_000 metric tonnes on bulk cargo. The turnaround time for voyages will be 10 to 12 days and the service will operate twice a month.  This vessel provides direct cargo connectivity between India and the Maldives on a predictable and affordable basis for the first time_ and will lower costs and times for traders in both countries_ the Indian mission in Male said in a statement. Officials said the ferry service is aimed at upgrading the trade partnership and improving logistics on both sides. Though the two sides have traded for centuries_ India is currently only the fourth largest trading partner of the Maldives_ after the UAE_ China and Singapore.  Alongside the expansion of Hanimaadhoo airport through an Indian line of credit_ connectivity to the northern port of Kulhudhuhfushi through the cargo ferry service will underpin the economic development of northern Maldives and facilitate investments in tourism and other sectors. The launch of this service fulfils the commitment made by Prime Minister Narendra Modi during his visit to Maldives in June last year and the announcement made by External Affairs Minister S Jaishankar during his virtual meeting with the Foreign Minister of Maldives on August 13_ 2020_ the statement said.